The JE CEO was routinely pounded on the call about their free cash flow (or lack thereof) and with extreme skepticism that they could continue to pay this dividend AND pay down their debt at the same time. That's the reason the stock has been pounded these 2 trading sessions. New shorts, plus folks exiting the door ahead of what many (most?) now believe will be a dividend cut sometime in the next year. That said, frankly the stock has dropped SO MUCH at this point, I'm not sure this isnt a net overreaction even if the assumed dividend cut occurs.
I'll be back middle of next week to re-assess JE. Right now there is no bottom to it, and with a dividend cut almost guaranteed to happen at some point, like it has in the past (they keep reducing it), I don't see JE going anywhere up anytime soon. I'm interested in it below $6.00, and especially below $5.50, but not until then. Cheers all.
Their payout ratio rose to 105%, which in the long term is unsustainable. It was 98% previous quarter. So people are selling because of that. If it goes below 7 in the next few days I'll probably buy more, but people didn't want to see that cause it threatens the dividend.